[ET Net News Agency, 15 August 2019] HSBC Global Research lowered its target price for
Champion REIT (02778) to HK$6.1 from HK$6.9 and maintained its "hold" rating.
The research house said Champion reported a strong set of results, with distribution per
unit (DPU) growth of 6.8% to HK$0.1335. HSBC expects the company to deliver resilient DPU
growth in the next 12 months, driven by positive rental reversions for its Three Garden
Road (TGR) office project.
However, HSBC sees two key risks that could potentially lower its DPU growth visibility:
(1) increasing downside pressure on spot rents for TGR, and (2) lower turnover rents for
its Langham Place mall. (KL)